$21 Trillion And Rising: How Central Banks Are LBOing The World In One Stunning Chart
Content adapted from this Zerohedge.com article : Source
The Central Banks easing in the last decade proceeded at an unprecedented rate.
In 2016, Citi asked "Where is the utility in marginal QE" citing their belief that the longer QE continues, the bigger the marginal cost until it becomes a detriment.
Citi started raising questions when the owned $18T in assets. Since that time, the total increased another $3T to a total of $21T.
To put it in perspective, Central Banks now owned over 40% of global GDP, more than double the amount of 17% they had before the banking crisis less than a decade ago.
With such a huge stake, Central Banks are nervous about the "recovery" stalling. If markets start to sell off, it is these institutions that could see their balance sheets serverely hurt.
Citi's Hans Lorenzen said last November:
In the context of a self-reinforcing, herding market, the pivot point where the marginal investor is indifferent between putting more money back into risk assets and holding cash instead is fluid. But when the herd suddenly changes direction, the result is a sharp non-linear shift in asset prices. That is a problem not only for us trying to call the market, but also for central bankers trying to remove policy accommodation at the right pace without setting off a chain reaction – especially because the longer current market dynamics run, the more energy will eventually be released.
That seems to be a growing fear among a number of central bankers that we have spoken to recently. In our experience, they too are somewhat baffled by the lack of volatility and concerned about the lack of response to negative headlines.... Our guess is that sooner or later in the process of retrenchment they will end up going too far – though that will only be obvious with hindsight.
Non-adapted content found at zerohedge.com: Source
One indication of just how messed up and flawed the global markets have become is reflected in the way central banks across the world are now buying stocks. This has become a part of their response to correcting the forces of past excesses. One thing is clear, the central bank's large foray into stock ownership represents more than just a moral hazard and in many ways, it paves the path for a liquidity crisis in our future.
This building financial crises has been watching paint dry. So boring. It has been tough to stay perpared and i am reaching the capitulation point but i know once i go full retard that's when everything will go down.
"Central Banks now owned over 40% of global GDP" Holy fuck, what kind of house of cards have the central banks built?
@Zer0hedge.. bro It's worth pointing out that the majority of this state-sponsored takeover is by Japan and China, which are racially uniform nation-states that operate, more or less, in the interests of their own citizens.
The US and Europe, on the other hand, are turning into multi-racial/multicultural shitholes controlled by Jews, and the central banks operate on behalf of Jews, to facilitate the transfer of national wealth from the local goyim to the Jews and shabbos goys who operate the Deep State. So in these areas the nation-states themselves are not the actual beneficiaries. Switzerland, of course, is the notable exception.
So while this article is interesting, it's misleading in that it lumps the activities of all central banks together and assumes they have the same motivations, which is the furthest thing from the truth.
It's worth pointing out that the majority of this state-sponsored takeover is by Japan and China, which are racially uniform nation-states that operate, more or less, in the interests of their own citizens.
The US and Europe, on the other hand, are turning into multi-racial/multicultural shitholes controlled by Jews, and the central banks operate on behalf of Jews, to facilitate the transfer of national wealth from the local goyim to the Jews and shabbos goys who operate the Deep State. So in these areas the nation-states themselves are not the actual beneficiaries. Switzerland, of course, is the notable exception.
So while this article is interesting, it's misleading in that it lumps the activities of all central banks together and assumes they have the same motivations, which is the furthest thing from the truth.
nice post
The market is overvalued, noticeable to even the layman. It will correct. Granted, I'm not an expert in monetary issues, but the root of America's problem here and everywhere else is spiritual. America's addiction to borrowed money and banks to lend is taken as obvious, both from a government side as well as a private individual side. Perhaps that's going to a legalistic extreme, but anybody that is objective and honest can see that borrowing to buy everything is prooving a lack of understanding for what we have or can afford. Our Federal Reserve monetary system which has no backing and is a gigantic ponzi-scheme, where the printing of money out of thin air has only worked to increase the wealth of non-laboring people, and further enslaved those who do labor for their wages. Former wise presidents have stated that whoever controls a nation's money control's their security. Everyone has a piece of responsibility in this problem, but only almost no one will take responsibility for it. How sad for America, but not surprising from a nation who has trust in the government to "educate" their kids in public schools, where the lessons of history are not only not taught, but have been re-written by socialists, communists, etc. How many Americans back in 2008 & 2012 during the Presidential campaign turned up their noses at what Ron Paul was saying, with the help of the communist owned mainstream media. Both Democrats and Republicans were clueless as to why Dr. Paul's centerpiece legislation was about Auditing the Fed and Ending the Federal Reserve. He has been talking about this bubble for decades, but because it hasn't completely imploded, therefore they regarded him as a "kook".
Well, these above issues will also cause a number of billions of people joining cryptocurrencies. These banks earn more from the people and lower their services which infact lead to some uncertainty about the way the central banks allocate their resources.
Most of them are now focused on buying shares and forget the principal monetary policies. Some of them are busy doing a severe contractionary monetary policies making the currency a hard stone to reach.
Unless they provide a durable solution, nothing will change, after all we are now living in a crypto world and people are now shifting from digital to cryptos transactions.
Great post...Most of them are now focused on buying shares and forget the principal monetary policies. Some of them are busy doing a severe contractionary monetary policies making the currency a hard stone to reach.
Almost makes you wonder if our debt exists solely to fund off the books programs. Definitely enough money to create a runaway civilization, considering the fact that the net worth of all U.S. households is only something like 84 trillion. How maddening would that be, if the government was building a runaway civilization and then making Americans pay the bill with interest. That'd be the most frustratingly accurate example of getting ripped . without this money having disappeared, we wouldn't have a debt. We would have been running a surplus sufficient to erase the entire debt. This would have enabled the US to invest in assets (as China's government does) that generate profits every year, rather than our having to service debt on a continuing basis.